What is Money Jar Trap? (As in Savings)

It is a traditional way of saving money to place the extra coins into a jar. For centuries people have been using this way as it is quite easy way. Just collect the coins in a jar that have been saved daily and at the end of month count them and deposit them into your saving account of local bank. But in reality when we go in depth of money circulation it is actually way of losing money not saving it. People prefer this way to banks and other enterprises as they charge people for placing their money.

Another way to keep your money in market is to change it at a grocery store, coin star and other business. They will issue you a receipt that you can use for your grocery shopping, but they’ll also take a huge fee to do so. In result it would definitely decrease your saved money.

If a bank accept all the money you have they will charge you for it as well. As banks are paying on amount that you have in your saving accounts in a bank, so people left their money in banks for several years. This all results in down of money and become similar to jar trapping of money. That is actually losing money not saving it.
To actually know whether you are saving money or losing it few steps can be taken into account. First never change your money at a grocery store or any other similar place because this will automatically reduce your money to 10%. When you wish to place your money in bank check the policy of bank regarding charge on money. It differs widely from bank to bank and make sure you don’t have to be charged fro your amount. In this regard credit unions are better than banks as they don’t charge fees on your money. Incase you don’t found any bank that cant take coins without charging the fees. Then use that coins for your everyday needs. It would be much better than placing them in jars that ultimately reduce the value of money by the time.

Instead of saving coins, move up to $1 bills for your money jar. In this case you’ll be saving $1 bills instead of change. You don’t spend any $1 bills you receive, but any coins you receive are fine to use. This means use your coins for purchases that you made. At the end of the day, you place all your $1 bills into your savings jar. Since banks will not charge you anything to deposit $1 bills, you avoid the fees you would get for the change and save even more money than with coins. Another way to change the money is buying the stamps with the coins. By this you will get 100% value for your coins, which is better than paying fees to have the coins switched to bills.

So its valuable to remember that you can get full face value of a coin by spending them on time rather than collecting them and then paying fee for their deposit.